Wantitative Queezing

According to RBA Governor and Supreme Leader, Phil Lowe:

unconventional monetary policy will not be implemented until rates hit 0.25 per cent .

Really?  Please then Dr Lowe, can you explain the following chart based on RBA data:

A printing we will go.  A printing we will go.
Bugger Australian savers.  A printing we will go.

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25 Responses to Wantitative Queezing

  1. max

    https://www.garynorth.com/public/19609.cfm

    The Official Counterfeiter
    Gary North – June 15, 2019

    A central bank is the government’s officially licensed counterfeiter.

    Counterfeiting is illegal because governments, central banks, and commercial banks want no competition. What they are really protecting is their government-protected trademark.

    debased silver and watered-down wine
    Your silver has become dross, your best wine mixed with water (Isaiah 1:22).

  2. RobK

    It isn’t a good look/idea. Some punters may will cash-in super to upsize their residence as investment.
    Superannuation is being subverted, as are savings in general, at a time of high debt. How can this possibly go wrong? Have faith son, we’ll think of something- invest in renewables. Idiots.

  3. max

    The Official Counterfeiter (1969): A Classic Cartoon Booklet on The Federal Reserve System Is Now Online

    Back in 1969, Vic Lockman published a cartoon booklet exposing the Federal Reserve System. Lockman was a cartoonist for Disney. He did not do the final cartoons. He wrote the story lines and provided accompanying cartoons. Then the in-house Disney cartoonists re-drew them.

    Lockman had been reading my essays on the Federal Reserve. He created The Official Counterfeiter as an easy-to-grasp explanation of fractional reserve banking. He updated it in 1974.

    https://www.garynorth.com/public/9035.cfm

  4. Ƶĩppʯ (ȊꞪꞨV)

    who knew you could fix a demographic problem with economic stimulus…

  5. Neil

    What are Australian dollar investments? I guess you are saying it is unconventional monetary policy.

  6. JC

    Sparts

    He’s signalling which means he’s hoping the market will believe him and therefore adjustment takes place without the need for QE.

    Here’s the question though.

    Will markets believe a RBA chairman who hasn’t attained the inflation target since his appointment?
    I’m not sure.

    I think if the government wanted to restore RBA credibility it should fire this effeminate, krugman apostle and hire someone who could be.

    Lowe should have been fired the minute he began to talk about fiscal stimulus and gerbil warming. He’s useless and needs to be let go.

  7. Kingsley

    And there was me thinking an interest rate of 0.25 itself was “unconventional “

  8. max

    Central bankers as Debasers

    The history of those who debase money and cause inflation in an effort to get something for nothing — i.e., coin clippers, counterfeiters, and central bankers — is long and sordid.

    The evils which have resulted from the depreciation of the coinage, which robbed large classes of the industrious citizens of a great part of their wealth, reduced the value of property, produced confusion in legal contracts, and anarchy in prices in the public markets.

  9. mh

    Give us another 50 luv, this pokie jackpot will go off anytime.

  10. max

    John Witherspoon on Legal tender law:

    Why will you make a law to oblige men to take money when it is offered them? Are there any who refuse it when it is good?
    If it is necessary to force them, does not this system produce a most ludicrous inversion of the nature of things.

  11. Bruce of Newcastle

    Why is anyone going to invest in anything productive when:

    – the government is arranging for electricity prices to double, having already doubled since Hazelwood was closed
    – red tape is legion
    – black tape is byzantine, even to individual factions of land councils and tribes
    – green tape is even worse
    – climate nutters expensively glue themselves to your assets
    – union extortion rackets are inflicted upon you lawlessly and endlessly
    – the government will sic ASIC, APRA and the ATO on you if you give them the tiniest of excuses

    And the Reserve Bank expects flooding the corporate landscape with ultracheap money is going to do anything other than cause companies to invest the dosh in low tax low regulation domiciles overseas?

  12. John A

    Will markets believe a RBA chairman who hasn’t attained the inflation target since his appointment?
    I’m not sure.

    JC, Why should anyone believe an RBA Chairman who has an inflation target?

  13. RobK

    Are the RBAs actions any different to price fixing? Price fixing of savings rentable value.

  14. Spurgeon Monkfish III

    unconventional monetary policy will not be implemented until rates hit 0.25 per cent

    This sounds very ominous.

  15. Gr

    It’s pretty clear that the Reserve Bank does not understand the damage it is now doing, much less the damage it will do if it follows the path set out by its chairman. You might have thought that, by now, the fallacies of Keynesian and neo-Keynesian theory would be there for all to see but, like worn out Marxist nonsense, it returns like a bad penny every time bureaucrats see an opportunity to meddle in the economy.

  16. It’s pretty clear that the Reserve Bank does not understand the damage it is now doing, much less the damage it will do if it follows the path set out by its chairman. You might have thought that, by now, the fallacies of Keynesian and neo-Keynesian theory would be there for all to see but, like worn out Marxist nonsense, it returns like a bad penny every time bureaucrats see an opportunity to meddle in the economy.

  17. I_am_not_a_robot

    The so-called baby-boomers (not me) incurred the high interest rates of the 1980s when they were net borrowers and are now copping the low interest rates when net savers.

  18. Gowest

    Like the rest of the cut and paste brigade who rule our country they keep doing the same old stuff cos its the only thing they know, whilst stating distraction comments (lies) and using lawfare to steal our savings from the banks we have to use — seem like they may already have transfered to bitcoin and the like?

  19. JC

    If people here understand the difference between nominal and real interest rates, they wouldn’t be making silly comments. They would also appreciate why there is an inflation target.

  20. MatrixTransform

    Don’t fly too close to the sun he said

  21. Squirrel

    From last night’s effort – “In addition, there is evidence that they (negative interest rates) can encourage households to save more and spend less, especially when people are concerned about the possibility of lower income in retirement.”

    It must be truly wonderful to be paid so much money for stating the bleeding frigging obvious long after just about everyone else, including visually-challenged Freddy has worked it out.

    And just in case anyone missed this dazzzlingly clever bit of verbal footwork, the bad stuff would only happen if we take the scary step into negative rates – so none of the mastermind efforts to date have anything whatsoever to do with anything less than fabulous which might be happening now in the mighty ‘Strayan economy.

  22. candy

    I think the RBA big boss chap has overlooked something obvious, well to me anyway, but it’s a psychological emotive thing and most peoples here won’t agree with it, I don’t think,
    and that is that the dreadfully low interest rates on savings sucks the life out of people putting their savings into term deposits, voluntary super etc as they get towards the end of their working life but may have a decade to go.

    It destroys confidence as it indicates that striving for a more comfortable life is worthless and the RBA/government places no importance on their striving.

  23. I_am_not_a_robot

    In my comment above I was referring to the difference between the respective interest rates and inflation rates then and now.
    As opposed to the ’80s -early ’90s real interest rates now on savings are approaching the negative.

  24. John Constantine

    ” All your money belong us”

    Watch what the Golden Ton buy.

    Specifically, watch One Belt, One Road, One Dan andrews return from one of his regular kowtow calls to the communist party of China, bursting with the need to buy shipping containers full of semi-automatic assault rifles to arm viktorias paramilitary Death Squads.

    Their dan can see the Cheerful Squalor looming, and he is hellbent on fundementally transforming vikpol along the lines of the chicom political secret police to protect his agenda when the Day arrives.

  25. JC
    #3246487, posted on November 27, 2019 at 5:31 pm

    If people here understand the difference between nominal and real interest rates, they wouldn’t be making silly comments. They would also appreciate why there is an inflation target.

    With a 0.25% cash rate and CPI of 0.3%, we have deflation.

    The answer is not lower rates, this only increases inflation and thus lowers real rates further.

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